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Creating interior quality standards for China's condominiums

Challenges for customers

Need for the help of a housing equipment manufacturer capable of systematizing condominium interiors.

With newly constructed condominiums in China, the trend has been to conduct "skeleton sales," with indoor concrete left bare. For that reason, customers who purchase condominiums have no choice but to select interior contractors on their own, resulting in variations in construction management when dealing with drafts, water leakage and other issues. Condominium developers in China need the help of a trustworthy housing equipment manufacturer that is familiar with construction and interior finishing.

Panasonic has established a joint company with a local interior contractor and a developer. By expanding construction materials/equipment sales from B-to-C to B-to-B, we have enabled post-construction quality assurance.

Panasonic has established a joint company with a local interior contractor and a developer. By expanding construction materials/equipment sales from B-to-C to B-to-B, we have enabled post-construction quality assurance.

Initiatives

Exporting the quality of Japanese interior finishing to China

When the building frame and interior are constructed separately, the life of a condominium can exceed 100 years. Therefore, the "skeleton-infill method," which separates the pillars/floors from the interior, is used in Japan. Panasonic offers and implements interior work based on this model. So, in order to use such know-how for "skeleton houses" in China, Panasonic has established a joint company with a local interior finishing company called "Sunny Decoration," and has implemented measures to offer turnkey interior finishing work to customers who purchase new condominiums.

Shift in the Chinese market

Shift in the Chinese market:
New construction with finished interiors has increased.
There is increased need for B-to-B interior finishing business.

Offering not just luxury but also a value in terms of reassurance and safety

In China, where there is increased interest in indoor air quality, we prevent "sick house" syndrome by offering interiors free of organic solvent. Our reassurance/safety-focused products and high-quality construction have not only helped gain customer trust but have also attracted attention in the Chinese condominium market. Such efforts have inspired a joint business with the largest developer in China, and, through that arrangement, we are now in charge of the interior finishing of condominiums for affluent people. We provide total support, ranging from project proposals and design to construction and after-sale service, thereby offering long-term quality assurance.

High quality interiors are provided for all rooms, including the living room, kitchen and bedrooms.

High quality interiors are provided for all rooms, including the living room, kitchen and bedrooms.

We do the construction, so we can provide high-quality interiors.

We do the construction, so we can provide high-quality interiors.

Delivering high quality at low prices to the middle class

Minimizing product prices and boosting the efficiency of construction can reduce costs. Based on our achievements in Japan, we have taken on the challenge of developing low-cost interior work for the Chinese market. We have streamlined manufacturing and construction by utilizing our know-how in "interior systemization" and, "home equipment systemization". This has led to an approximate 30% reduction in construction prices. By creating a new brand value that combines high quality and low price, our products have become available for condominiums for the middle-income class, from which the greatest demand is expected.

Panasonic Sunny Decoration (Shanghai) Co., Ltd. has created showrooms, in order to make better proposals.

Panasonic Sunny Decoration (Shanghai) Co., Ltd. has created showrooms, in order to make better proposals.

Effects

Expanding the Panasonic brand throughout China

Our sales target for the fiscal year 2012 is 10 billion yen. Despite the Lehman Brother’s Shock, our business continues to expand after overcoming unfavorable market conditions, partly because low-cost interior finishing has been accepted by the market segment. Moreover, instead of conventional "skeleton houses," sales of new condominiums with finished interiors, like those in Japan, have increased. Riding on the strength of this market background, we will continue to develop our business operations in other cities in China, as we strive for further expansion.

An order was received for this

An order was received for this "entire condominium" in Guangzhou.

Dalian Software Park Yida Ruanjing E ju

Dalian Software Park Yida Ruanjing E ju

Future vision

Developing the value chain through after-sales service improvement

Our new goal is to help after-sales service to take root in the Chinese condominium market. Working closely with maintenance service companies, we will improve renovation and maintenance systems. We aim to establish quality standards on home interiors in China, by developing a value chain that comprises high quality housing equipment, high_precision interior construction and after-sale services.

Value chain for maximizing product values

Value chain for maximizing product values:
We have improved after-sales services in order to achieve long-term quality assurance.

We aim for long-term relationships with customers by providing better after-sales services, including inspections.

We aim for long-term relationships with customers by providing better after-sales services, including inspections.

*Products shown here may not be available depending on the country or region.

terminology
Interior systemization

The life of the building frame (skeleton) of condominiums is much longer than that of interiors (infill) such as water supply systems as well as floor and wall materials. Condominiums constructed with a separate frame and interior, a setup developed to preserve asset values by replacing only the interiors, are called “skeleton-infill” condominiums.
For the construction of such condominiums, it is necessary to systematize the interiors and facilitate interior replacement, such as enabling water supply system replacement without demolishing interior walls.

Interior solutions provider in China

Panasonic Yida Decoration (Dalian) Co., Ltd.
Interior solutions provider jointly funded by Panasonic and a major real estate developer, the Yida Group, in Dalian, China

Panasonic Sunny Decoration (Shanghai) Co., Ltd.
Company in Shanghai, China, jointly funded by Panasonic and Hangzhou Shengli Rigging Hardware Co., Ltd.

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